There will come a time when a current tenant may fall seriously behind or owe you for something due under the lease, such as an accumulated water bill, a bounced security deposit check or some damages they did to the premises. A promissory note is simply an agreement when one party agrees to pay another party a particular past due sum or currently due sum on a particular date or dates.
Some recommend that a promissory note should be used only with a past or departing tenant owes you money and desires to pay you on a certain date or dates according to the payment arrangement spelled out on the promissory note. These people also recommend never using such an arrangement with a current tenant. The tenant may vacate owing you past due rent, late charges, unpaid utility bills or anything owed under the terms of the lease This Note will memorialize the debt in writing and can be used later if the past tenant defaults, and you wish to pursue the debt.
These same people recommend that a promissory note should not be used with a current tenant who owes you money. They point out that unless the promissory note clearly states that the amount is rent due under the terms of the lease, the landlord may have unwittingly converted past due rent into simply a monetary obligation for which he will not be able to evict the tenant using a Statutory Notice Period. Also suppose the tenant fails to make a payment, what is owed: the full balance all at once; or only that missed payment? This matter may be clarified by an acceleration clause in both the lease and the Note.
A New Mexico Promissory Note for Past Due Rent is a legal document used to outline the agreement between a landlord and a tenant when it comes to unpaid rent. It serves as a binding contract between the two parties, stating the amount of rent owed, the agreed-upon terms of repayment, and any additional conditions or penalties. This promissory note ensures that both the landlord and the tenant are clear on their obligations and provides a legal recourse in case of default. Keywords: New Mexico, Promissory Note, Past Due Rent, legal document, landlord, tenant, unpaid rent, agreement, repayment, conditions, penalties, obligations, default. There are no specific different types of New Mexico Promissory Note for Past Due Rent as the content and format of the note are generally similar regardless of the specific circumstances. However, certain elements within the promissory note may vary depending on individual agreements, such as the repayment schedule or any additional terms agreed upon by the parties involved.
